When you get your first job after college, the last thing you’re thinking about is retirement. But the closer you get to retirement age, the more it’s weighing on your mind. Have I saved enough? Should I have done more? These are questions we all start to ask as we get older. If you want to really enjoy your retirement, here are three ways you can make your finances thrive once you’ve retired.
Get a part time job: You spent your whole adult life working and the last thing you probably want to do is go back to work. But the fact is, supplementing your income in retirement is a great way to make your money go further. Plus, you’ll stay active and that’ll keep you feeling young.
Wait as long as you can on social security: From age 62 to 70 your benefit will grow at around 8% each year that you defer enrollment. You may feel ready to start receiving those benefits at age 62, but you’ll get a lot more bang for your buck if you’ll wait a few more years.
Plan ahead: The magic number for a withdrawal rate in retirement has long been at 4% annually. If you want to be sure that you’ll have enough money to last until you die, you may want to think about cutting back that number just a little bit more. Regardless if you decide to take out less that 4% from your investments each year, just make sure you don’t pull out more. Figure out the magic amount that will work for you, create a budget, and stick to it.